Indonesian Pineapple Prices Expected to Increase after Chinese Market Access

Indonesia, one of the world’s largest pineapple producers, has gained access to one of the largest pineapple import markets which have seen an accelerated growth rate over the last few years. Therefore, from late August 2022, the import of fresh pineapples from Indonesia that meet the relevant phytosanitary requirements is allowed.

Pineapples in Indonesia are a high-value commodity, as production in recent years has continued to rise due to its two harvests per year. In 2021, Indonesia's pineapple production reached 2.92 million mt, a 20% YoY increase, and the export value reached USD 336 million. The main markets for Indonesia’s pineapples are the United Arab Emirates, Japan, Hong Kong, Singapore, Saudi Arabia, Oman, Canada, Kuwait, and South Korea.

Gaining access to China has been a priority for the Indonesian industry, as there was no agreement on quarantine procedures between the two countries. Prior to pineapples receiving formal market access, only five other types of Indonesian fruit were permitted to enter China: bananas, longans, mangosteens, snake fruit (salak), and dragon fruit. Indonesia has been working on gaining permission to export fresh pineapples to China since 2016. Producers actively supported the process by sending data and fruit samples to be tested by the Chinese quarantine authorities.

The expected increase in export volume of pineapples in Indonesia has also brought producers to hope that the price will increase substantially. For Yun Primawan, Tridge’s Origination Manager in Indonesia, Indonesian pineapple prices are expected to increase gradually starting in September 2022 and will continue to rise until December 2022. “The price increase expectations are due to the increased demand in China and the Middle East as it approaches the holiday season. Furthermore, the pineapple harvest in the Middle East has ended (as it enters the winter), and it will begin importing pineapples due to the lack of domestic supply”, he mentioned.

After a slowdown during the first years of the COVID-19 pandemic, the GACC has recently been announcing a steady stream of new fresh fruit approvals. Since July, China has opened up its market to other new markets: Zimbabwean citrus, Ecuadorian dragon fruit, Vietnamese durians, and Egyptian pomegranates. Market access is also anticipated to be granted soon for Cambodian longans.

However, for Mr. Primawan, the critical developing market for Indonesia’s pineapples remains the Middle East. “With still high demand from the Middle East, producers and exporters are optimistic that this year’s exports will grow positively compared to last year. The biggest demand is still from the Middle East market”, he added.